Barfresh Food (BRFH) 10-K 2 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 08, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	BARFRESH FOOD GROUP INC.
Entity Central Index Key	1,487,197
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 37,903,472
Entity Common Stock, Shares Outstanding		118,701,577
Trading Symbol	BRFH
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,304,916	$ 9,180,947
Accounts receivable	301,012	131,088
Inventory	1,415,495	317,948
Prepaid expenses and other current assets	24,496	25,864
Total current assets	3,045,919	9,655,847
Property, plant and equipment, net of depreciation	1,760,890	1,494,478
Intangible assets, net of amortization	586,943	619,863
Deposits	39,369	53,202
Total Assets	5,433,121	11,823,390
Current liabilities:
Accounts payable	421,176	153,756
Accrued expenses	849,529	746,375
Deferred rent liability	495	165
Current portion of long term debt		3,849
Total current liabilities	1,271,200	904,145
Long term Debt, net of current portion	0	8,958
Total liabilities	1,271,200	913,103
Stockholders' equity:
Preferred stock, $0.000001 par value, 5,000,000 shares authorized, none issued or outstanding
Common stock, $0.000001 par value; 300,000,000 shares authorized; 118,690,527 and 117,103,276 shares issued and outstanding at December 31, 2017 and 2016, respectively	119	117
Additional paid in capital	37,992,799	35,829,627
Accumulated (deficit)	(33,830,997)	(24,919,457)
Total stockholders' equity	4,161,921	10,910,287
Total Liabilities and Stockholders' Equity	$ 5,433,121	$ 11,823,390

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	118,690,527	117,103,276
Common stock, shares outstanding	118,690,527	117,103,276

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 1,997,012	$ 1,457,499
Cost of revenue	1,085,575	772,827
Gross profit	911,437	684,672
Operating expenses:
General and administrative	9,492,094	10,415,933
Depreciation and Amortization	330,883	208,614
Total operating expenses	9,822,977	10,624,547
Operating loss	(8,911,540)	(9,939,875)
Other expenses
Interest		250,850
Net (loss)	$ (8,911,540)	$ (10,190,725)
Per share information - basic and fully diluted:
Weighted average shares outstanding	117,748,411	95,557,640
Net (loss) per share	$ (0.08)	$ (0.11)

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated (Deficit) [Member]	Total
Balance at Dec. 31, 2015	$ 87	$ 15,798,337	$ (14,728,732)	$ 1,069,692
Balance, shares at Dec. 31, 2015	86,186,453
Issuance of stock for cash, net of expenses of $750,019	$ 24	15,707,106		15,707,130
Issuance of stock for cash, net of expenses of $750,019, shares	24,598,674
Exercise of warrants	$ 2	714,998		715,000
Exercise of warrants, shares	2,464,017
Exercise of options		25,500		25,500
Exercise of options, shares	50,000
Conversion of debt into stock	$ 4	2,242,688		2,242,692
Conversion of debt into stock, shares	3,502,327
Debt settled for stock		112,849		112,849
Debt settled for stock, shares	176,328
Issuance of stock for services		95,000		95,000
Issuance of stock for services, shares	125,477
Equity based compensation		1,133,149		1,133,149
Equity based compensation, shares
Net (loss) for the year			(10,190,725)	(10,190,725)
Balance at Dec. 31, 2016	$ 117	35,829,627	(24,919,457)	10,910,287
Balance, shares at Dec. 31, 2016	117,103,276
Exercise of warrants		35,400		35,400
Exercise of warrants, shares	232,005
Exercise of options
Exercise of options, shares	276,171
Issuance of stock for services	$ 1	112,250		$ 112,251
Issuance of stock for services, shares	178,733			178,733
Equity based compensation	$ 1	2,015,522		$ 2,015,523
Equity based compensation, shares	900,342
Net (loss) for the year			(8,911,540)	(8,911,540)
Balance at Dec. 31, 2017	$ 119	$ 37,992,799	$ (33,830,997)	$ 4,161,921
Balance, shares at Dec. 31, 2017	118,690,527

Statement of Stockholders' Equ6

Statement of Stockholders' Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2016USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance of common stock expenses	$ 750,019

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flow from operating activities:
Net (loss)	$ (8,911,540)	$ (10,190,725)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation	268,784	147,131
Equity based compensation	1,550,718	1,133,149
Amortization of intellectual property	62,099	61,483
Interest related to debt discount		180,707
Loss on sale of property and equipment		63,751
Stock issuance for service	112,251	95,000
Change in operating assets and liabilities
Accounts receivable	(169,924)	(102,492)
Inventory	(1,097,547)	10,012
Prepaid expenses	1,368	4,660
Deposits	13,833	(36,751)
Accounts payable	267,420	21,952
Accrued expenses	567,960	589,025
Deferred rent	330	(1,690)
Net cash (used in) operations	(7,334,249)	(8,024,788)
Cash flow from investing activities:
Purchase of fixed assets	(535,196)	(1,053,498)
Proceeds from sale of equipment		36,910
Investment in patent and trademarks	(29,179)	(64,089)
Net cash (used in) investing activities	(564,375)	(1,080,677)
Cash flow from financing activities:
Issuance of common stock and warrants for cash	35,400	16,457,150
Equity issuance costs		(750,020)
Exercise of warrant and options		740,500
Repayment of short term notes payable -related party		(100,000)
Repayment of long term debt	(12,807)	(47,222)
Net cash provided by financing activities	22,593	16,300,408
Net increase (decrease) in cash	(7,876,031)	7,197,943
Cash and cash equivalents at beginning of period	9,180,947	1,986,004
Cash and cash equivalents at end of period	1,304,916	9,180,947
Supplemental disclosure of cash flow information:
Cash paid for interest		23,370
Cash paid for income taxes
Non-cash financing activities:
Common stock issued for services, and conversion of debt		2,450,541
Settlement of liability with Equity awards	$ 464,806

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Barfresh Food Group Inc., (“we,” “us,” “our,” and the “Company”) was incorporated on February 25, 2010 in the State of Delaware. We are engaged in the manufacturing and distribution of ready to blend beverages, particularly, smoothies, shakes and frappes. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc. All inter-company balances and transactions among the companies have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less, at the time of purchase, to be cash equivalents. Concentration of Credit Risk The amount of cash on deposit with financial institutions exceeds the $250,000 federally insured limit at December 31, 2017 and 2016. However, we believe that cash on deposit that exceeds $250,000 in the financial institutions is financially sound and the risk of loss is minimal. Fair Value Measurement Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts receivable, accounts payable, accrued expenses and notes payable. The carrying value of our financial instruments approximates their fair value due to their relative short maturities. Accounts Receivable Accounts receivable are typically unsecured. Our credit policy calls for payment generally within 30 days. The credit worthiness of a customer is evaluated prior to a sale. As of December 31, 2017, and 2016, there is no allowance for doubtful accounts. There was no bad debt expense for the years ended December 31, 2017 and 2016. Inventory Inventory consists of finished goods and is carried at the lower of cost or net realizable value on a first in first out basis. Intangible Assets Intangible assets are comprised of patents, net of amortization and trademarks. The patent costs are being amortized over the life of the patent, which is twenty years from the date of filing the patent application. In accordance with ASC Topic 350 Intangibles - Goodwill and Other In accordance with ASC 350 legal costs related to trademarks have been capitalized. We have determined that trademarks have an indeterminable life and therefore are not being amortized. Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods that are deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing Equipment: 7 years Leasehold improvements: 2 years Vehicles 5 years Revenue Recognition We recognize revenue when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable, and collection is reasonably assured. Revenue is recorded net of provisions for discounts and promotion allowances. Our products are sold on various terms. Our credit terms, which are established in accordance with local and industry practices, typically require payment within 30 days of delivery. We recognize revenue upon receipt of our products by our distributors and retail accounts, in accordance with written sales terms, net of provisions for discounts or allowances. Allowances for returns and discounts are made on a case-by-case basis. Historically, neither returns nor discounts have been material. Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $574,989 and $432,146, in research and development expenses for the years ended December 31, 2017 and 2016, respectively. Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases Income Taxes The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. For the years ended December 31, 2017 and 2016 we did not have any interest and penalties or any significant unrecognized uncertain tax positions. Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share Stock Based Compensation We calculate stock compensation in accordance with ASC Topic 718, Compensation-Stock Based Compensation Recent pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards not yet effective may have an impact on our results of operations and financial position. In May 2014, the FASB issued ASU Update 2014-09 Revenue from Contracts with Customers (Topic 606), which converged guidance on recognizing revenue in contracts with customers on an effective date after our year ending December 31, 2017. The Company is in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. However, based on our initial evaluation, we do not expect there to be material changes to our current Revenue Recognition policies due to the non-complex contracts with our customers, including the definition of our performance obligations and the transaction prices in our contracts with our customers. The Company has evaluated the effect of the standard on our financial statements, and based on our evaluation, we do not expect there to be material impact to our financial statement. In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU leaves the accounting for the organization that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The Company is in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. However, based on our initial evaluation, we do not expect there to be material changes to both our current and long-term lease liabilities and our fixed assets of our limited number of operating leases that will be converted to financing leases under the new guidance. The Company does not plan to adopt the standard until the interim period ended March 31, 2019. In August 2014, the FASB issued FASB ASU2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern

Property Plant and Equipment

Property Plant and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	Note 2. Property Plant and Equipment Major classes of property and equipment at December 31, 2017 and 2016 consist of the following: 2017 2016 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing Equipment 1,952,538 1,605,317 Leasehold Improvements 4,886 4,800 Vehicles 29,696 29,696 1,988,644 1,641,337 Less: accumulated depreciation (665,657 ) (396,863 ) 1,322,987 1,244,474 Equipment not yet placed in service 437,903 250,004 Property and equipment, net of depreciation $ 1,760,890 $ 1,494,478 We recorded depreciation expense related to these assets of $268,784 and $147,131 for the year ended December 31, 2017 and 2016, respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 3. Intangible Assets As of December 31, 2017, intangible assets consist of patent costs of $764,891, trademarks of $88,853 and accumulated amortization of $266,801 As of December 31, 2016, intangible assets consist of patent costs of $750,640, trademarks of $73,925 and accumulated amortization of $204,702. The amounts carried on the balance sheet represent cost to acquire, legal fees and similar costs relating to the patents incurred by the Company. Amortization is calculated through the expiration date of the patent, which is December, 2025. The amount charged to expenses for amortization of the patent costs was $62,099 and $61,483 for the year ended December 31, 2017 and 2016, respectively. Estimated future amortization expense related to intangible property as of December 31, 2017, is as follows: Total Amortization Years ending December 31, 2018 $ 63,610 2019 63,610 2020 63,610 2021 63,610 2022 63,610 Later years 180,040 $ 498,090

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Parties	Note 4. Related Parties As disclosed below in Note 6, members of management and directors have received shares of stock and options in exchange for services.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies We lease office space under non-cancelable operating leases, which expires on March 31, 2019. The aggregate minimum requirements are as follows: For years ending December 31, 2018 $ 167,530 2019 43,462 $ 210,992

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity	Note 6. Stockholders’ Equity During the year ended December 31, 2016, the holder of warrants to purchase shares of common stock exercised their rights and purchased 1,250,000 shares of common stock for an aggregate price of $715,000. In addition, the holders of 620,000 warrants exercised their right to a cash-less conversion and received 1,214,017 shares. Also, during the year ended December 31, 2016 we issued 64,599 shares of stock to a member of our board of directors in lieu of $50,000 in director fees due and 60,878 shares of common stock in lieu of cash for legal fees. We valued the shares based on the trading value on the date issued. In addition, during the year ended December 31, 2016 we issued 50,000 shares of stock at a price of $0.51 per share in exchange for outstanding options. During the year ended December 31, 2016, we issued 1,893,442 options to purchase our common stock to employees of the Company. In addition, we cancelled 56,000 options to purchase our common stock. The exercise price of the options ranged from $0.6129 to $0.83 per share and are exercisable for a period of 8 years and have varying vesting periods of up to three years. The fair value of the options ($883,490 in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below, and are being expensed over the vesting period of each option. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 74.09% to 82.65 % Risk Free interest rate 1.24% to 1.73 % Dividend yield (on common stock) - During the year ended December 31, 2017, we issued 178,733 shares of common stock, valued at $112,250 for services. In addition, we issued 439,977 options to purchase our common stock to certain member of the Board of Directors in lieu of cash payments for Director fees. The exercise price of the options ranged from $0.77 to $0.79 per share, vest immediately, and are exercisable for periods of 8 years. In addition, we issued 1,485,000 options to purchase our common stock to employees and executives. The exercise price of the options ranged from $0.55 to $0.68 per share, vest after 3 years, and are exercisable for periods of 8 years. We also issued 95,995 shares of our common stock, with a value of $73,560, to a member of our Board of Directors in lieu of cash payments for Director fees. The fair value of the options issued ($999,682, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 73.9% to 89 % Risk Free interest rate 2.01% to 2.35 % Dividend yield (on common stock) - The shares of our common stock were valued at the trading price on the date of grant, $0.75 and $0.79 per share During the same period, we cancelled 122,000 options to purchase our common stock. Holders of 59,000 warrants, exercised those warrants for cash proceeds of $35,400. The holders of 950,000 options elected to exercise those options on a cashless basis and received 276,171 shares of our common stock. Holders of 1,049,847 warrants, elected to exercise those warrants on a cashless basis and received 173,005 shares of our common stock. The total amount of equity-based compensation included in additional paid in capital for the years ended December 31, 2017 and 2016 was $1,550,718 and $1,133,149, respectively, The following is a summary of outstanding stock options issued to employees and directors as of December 31 2017: Number of Options Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant $ Outstanding January 1, 2016 4,075,000 .45 -.87 - Issued 1,893,442 .61 -.83 Cancelled (56,000 ) Exercised (50,000 ) Outstanding December 31, 2016 5,862,442 .45-.87 Issued 1,924,977 .40-.79 Cancelled (122,000 ) Exercised (950,000 ) Outstanding December 31, 2017 6,715,419 .40-.87 5.93 Exercisable, December 31m 2017 2,855,878 .40-.87 4.96 -

Outstanding Warrants

Outstanding Warrants	12 Months Ended
	Dec. 31, 2017
Outstanding Warrants
Outstanding Warrants	Note 7. Outstanding Warrants The following is a summary of all outstanding warrants as of December 31, 2017: Number of Warrants Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant Warrants issued in connection with private placements of common stock 23,789,808 .50 - 1.00 0.63 - Warrants issued in connection with private placement of notes 2,626,667 .45 - 1.00 2.00 $ 64,583

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes Income tax provision (benefit) for the years ended December 31, 2017 and 2016 is summarized below: 2017 2016 Current: Federal $ - $ - State - - Total current - - Deferred: Federal (746,700 ) (2,878,000 ) State (117,200 ) (279,300 ) Total deferred (863,900 ) (3,157,300 ) Change in valuation allowance $ 863,900 $ 3,157,300 The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before provision for income taxes. The sources and tax effect of the differences are as follows: 2017 2016 Income tax provision at the federal statutory rate 34.0 % 34.0 % State income taxes, net of federal benefit 3.3 % 3.3 % Permanent Difference (5.46 %) - % Effect of rate change (41.53 %) - % Effect of change in valuation allowance 9.69 % (37.3 %) - % - % Components of the net deferred income tax assets at December 31, 2017 and 2016 were as follows: 2017 2016 Net operating loss carryover $ 6,902,200 $ 7,766,100 Valuation allowance (6,902,200 ) (7,766,100 ) $ - $ - ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. After consideration of all the evidence, both positive and negative, management has determined that a $6,902,200 and $7,766,100 allowance at December 31, 2017 and 2016, respectively, is necessary to reduce the deferred tax assets to the amount that will more likely than not be realized. The reduction in the valuation allowance for the current period is $863,900. As of December 31, 2017, we have a net operating loss carry forward of approximately $28,404,200. The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows: 2030 $ 1,000 2031 $ 63,800 2032 $ 345,900 2033 $ 1,840,300 2034 $ 2,324,100 2035 $ 2,987,300 2036 $ 5,061,700 2037 $ 8,464,700 2038 $ 7,315,400 As of December 31, 2017, we did not have any significant unrecognized uncertain tax positions.

Business Segments and Customer

Business Segments and Customer Concentrations	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Business Segments and Customer Concentrations	Note 9. Business Segments and Customer Concentrations. During the years ended December 31, 2017 and 2016, we operated in one segment. The following is a breakdown of customers representing more than 5% of sales for the year ended December 31, 2017: Revenue from customer Percentage of total revenue Customer A $ 1,243,341 62.3 % Customer B 140,028 7.02 % Customer C 110,497 5.54 % $ 1,493,866 74.88 % The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2016: Revenue from customer Percentage of total revenue Customer A $ 1,194,960 82.0 % Customer B 161,363 11.1 % $ 1,356,323 93.1 %

Liquidity

Liquidity	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity	Note 10. Liquidity We have a history of operating losses and negative cash flow. As our operations grow, we expect to experience significant increases in our working capital requirements. These conditions raise substantial doubt over the Company’s ability to meet all of its obligations over the twelve months following the filing of this Form 10-K. Management has evaluated these conditions, and concluded that current plans will alleviate this concern. As of December 31, 2017, we had no debt. On February 14, 2018, we announced the private placement of convertible notes with gross proceeds of $4.1 million. The funding of that note occurs upon the achievement of certain milestones establishing significant sales to national accounts. One milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 1,000 new locations. The first milestone was achieved on March 8, 2018. According to the terms of the Convertible Note, 60% of the gross proceeds, or $2.5 million, was received by the Company within five business days of that Milestone 1 achievement. The other milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 2,500 new locations. We expect the second Milestone to occur during 2018. On March 5, 2018, the Company issued a Promissory Note to an existing investor, in the amount of $250,000. The unsecured note bears interest at 12%, and has a 6 month term Proceeds are being used to fund the short term working capital needs of the Company. The Company plans to refinance this note upon maturity. In addition, we have significantly reduced core operating costs beginning in 2016, including reducing the number of our employees from 44 to 30 over this time period. Members of the senior management team have deferred a portion of their salaries during 2017, and are continuing to defer a portion of their salaries in 2018. Management is prepared to take further similar actions to reduce or defer fixed overhead should that become necessary. Management has concluded that it is probable that the combination of the above described financings which have already been achieved and are about to be achieved, along with the described measures available to reduce or defer fixed overhead, alleviate the substantial doubt of our ability to continue as a going concern. However, the Company cannot predict, with certainty, the outcome of its action to generate liquidity, including the availability of additional financing, or whether such actions would generate the expected liquidity as planned.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events On February 14, 2018, we announced the private placement of convertible notes with gross proceeds of $4.1 million The closing shall be no later than five (5) business days after receipt of notice from the Company that it has achieved certain milestones establishing significant sales to national accounts. One milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 1,000 new locations. The first milestone was achieved on March 8, 2018. The other milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 2,500 new locations. Upon achievement of the first milestone, 60% of the principal amount of the convertible notes will be available to the Company, with the balance of 40% upon achievement of the second milestone. The Company intends to use the proceeds from this financing to fund the manufacture of inventory, to purchase equipment, and for general corporate purposes. The convertible notes are unsecured and have (i) a two-year term, (ii) a 10% annual coupon to be paid in cash or stock at the Company’s discretion at a conversion price equal to 85% of the average closing bid prices of the Common Stock over the twenty (20) consecutive trading day period immediately preceding the payment date, but in no event lower than sixty cents ($0.60) per share of Common Stock. The investor’s may elect to convert their principal into common stock at a conversion price equal to the lower of: (i) $0.88 per share of Common Stock, or (ii) 85% of the average closing bid prices of the Common Stock over the twenty (20) consecutive trading day period immediately preceding the date of investor’s election to convert; but in no event lower than $0.60 per share of Common Stock. Investors also received warrant coverage of 25% of the number of shares that would be issuable upon a full conversion of the principal amount at an average of the twenty consecutive trading day period immediately preceding the applicable closing date. If any principal amount remains outstanding after the one-year anniversary of the closing, investors will be granted an additional warrant with identical terms. The warrants are exercisable for a period of three years for cash at the greater of 120% of the closing price or $0.70 per share of common stock. On March 5, 2018, the Company issued a Promissory Note to an existing investor, in the amount of $250,000. The unsecured note bears interest at 12%, and has a 6 month term Proceeds are being used to fund the short term working capital needs of the Company. The Company plans to refinance this note upon maturity.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc. All inter-company balances and transactions among the companies have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less, at the time of purchase, to be cash equivalents.
Concentration of Credit Risk	Concentration of Credit Risk The amount of cash on deposit with financial institutions exceeds the $250,000 federally insured limit at December 31, 2017 and 2016. However, we believe that cash on deposit that exceeds $250,000 in the financial institutions is financially sound and the risk of loss is minimal.
Fair Value Measurement	Fair Value Measurement Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of accounts receivable, accounts payable, accrued expenses and notes payable. The carrying value of our financial instruments approximates their fair value due to their relative short maturities.
Accounts Receivable	Accounts Receivable Accounts receivable are typically unsecured. Our credit policy calls for payment generally within 30 days. The credit worthiness of a customer is evaluated prior to a sale. As of December 31, 2017, and 2016, there is no allowance for doubtful accounts. There was no bad debt expense for the years ended December 31, 2017 and 2016.
Inventory	Inventory Inventory consists of finished goods and is carried at the lower of cost or net realizable value on a first in first out basis.
Intangible Assets	Intangible Assets Intangible assets are comprised of patents, net of amortization and trademarks. The patent costs are being amortized over the life of the patent, which is twenty years from the date of filing the patent application. In accordance with ASC Topic 350 Intangibles - Goodwill and Other In accordance with ASC 350 legal costs related to trademarks have been capitalized. We have determined that trademarks have an indeterminable life and therefore are not being amortized.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods that are deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing Equipment: 7 years Leasehold improvements: 2 years Vehicles 5 years
Revenue Recognition	Revenue Recognition We recognize revenue when there is persuasive evidence of an arrangement, delivery has occurred or services have been rendered, the sales price is determinable, and collection is reasonably assured. Revenue is recorded net of provisions for discounts and promotion allowances. Our products are sold on various terms. Our credit terms, which are established in accordance with local and industry practices, typically require payment within 30 days of delivery. We recognize revenue upon receipt of our products by our distributors and retail accounts, in accordance with written sales terms, net of provisions for discounts or allowances. Allowances for returns and discounts are made on a case-by-case basis. Historically, neither returns nor discounts have been material.
Research and Development	Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $574,989 and $432,146, in research and development expenses for the years ended December 31, 2017 and 2016, respectively.
Rent Expense	Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases
Income Taxes	Income Taxes The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. For the years ended December 31, 2017 and 2016 we did not have any interest and penalties or any significant unrecognized uncertain tax positions.
Earnings Per Share	Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share
Stock Based Compensation	Stock Based Compensation We calculate stock compensation in accordance with ASC Topic 718, Compensation-Stock Based Compensation
Recent Pronouncements	Recent pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards not yet effective may have an impact on our results of operations and financial position. In May 2014, the FASB issued ASU Update 2014-09 Revenue from Contracts with Customers (Topic 606), which converged guidance on recognizing revenue in contracts with customers on an effective date after our year ending December 31, 2017. The Company is in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. However, based on our initial evaluation, we do not expect there to be material changes to our current Revenue Recognition policies due to the non-complex contracts with our customers, including the definition of our performance obligations and the transaction prices in our contracts with our customers. The Company has evaluated the effect of the standard on our financial statements, and based on our evaluation, we do not expect there to be material impact to our financial statement. In February 2016, the FASB issued ASU No. 2016-02, Leases, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU leaves the accounting for the organization that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The Company is in the initial stages of evaluating the effect of the standard on our financial statements and continue to evaluate the available transition methods. However, based on our initial evaluation, we do not expect there to be material changes to both our current and long-term lease liabilities and our fixed assets of our limited number of operating leases that will be converted to financing leases under the new guidance. The Company does not plan to adopt the standard until the interim period ended March 31, 2019. In August 2014, the FASB issued FASB ASU2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Estimated Useful Lives of Assets	The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing Equipment: 7 years Leasehold improvements: 2 years Vehicles 5 years

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Major Classes of Property and Equipment	Major classes of property and equipment at December 31, 2017 and 2016 consist of the following: 2017 2016 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing Equipment 1,952,538 1,605,317 Leasehold Improvements 4,886 4,800 Vehicles 29,696 29,696 1,988,644 1,641,337 Less: accumulated depreciation (665,657 ) (396,863 ) 1,322,987 1,244,474 Equipment not yet placed in service 437,903 250,004 Property and equipment, net of depreciation $ 1,760,890 $ 1,494,478

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Estimated Future Amortization Expense Related to Intangible Property	Estimated future amortization expense related to intangible property as of December 31, 2017, is as follows: Total Amortization Years ending December 31, 2018 $ 63,610 2019 63,610 2020 63,610 2021 63,610 2022 63,610 Later years 180,040 $ 498,090

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum Requirements Under Non-cancellable Leases	The aggregate minimum requirements are as follows: For years ending December 31, 2018 $ 167,530 2019 43,462 $ 210,992

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule of Fair Value Assumptions of Options Using Black Sholes Option Pricing Model	The fair value of the options ($883,490 in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below, and are being expensed over the vesting period of each option. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 74.09% to 82.65 % Risk Free interest rate 1.24% to 1.73 % Dividend yield (on common stock) - The fair value of the options issued ($999,682, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 73.9% to 89 % Risk Free interest rate 2.01% to 2.35 % Dividend yield (on common stock) -
Summary of Outstanding Stock Options Issued to Employees and Directors	The following is a summary of outstanding stock options issued to employees and directors as of December 31 2017: Number of Options Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant $ Outstanding January 1, 2016 4,075,000 .45 -.87 - Issued 1,893,442 .61 -.83 Cancelled (56,000 ) Exercised (50,000 ) Outstanding December 31, 2016 5,862,442 .45-.87 Issued 1,924,977 .40-.79 Cancelled (122,000 ) Exercised (950,000 ) Outstanding December 31, 2017 6,715,419 .40-.87 5.93 Exercisable, December 31m 2017 2,855,878 .40-.87 4.96 -

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	12 Months Ended
	Dec. 31, 2017
Outstanding Warrants
Summary of Outstanding Warrants	The following is a summary of all outstanding warrants as of December 31, 2017: Number of Warrants Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant Warrants issued in connection with private placements of common stock 23,789,808 .50 - 1.00 0.63 - Warrants issued in connection with private placement of notes 2,626,667 .45 - 1.00 2.00 $ 64,583

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Summary of Income Tax Provision (Benefit)	Income tax provision (benefit) for the years ended December 31, 2017 and 2016 is summarized below: 2017 2016 Current: Federal $ - $ - State - - Total current - - Deferred: Federal (746,700 ) (2,878,000 ) State (117,200 ) (279,300 ) Total deferred (863,900 ) (3,157,300 ) Change in valuation allowance $ 863,900 $ 3,157,300
Summary of Statutory Federal Income Tax Rate Before Provision for Income Taxes	The sources and tax effect of the differences are as follows: 2017 2016 Income tax provision at the federal statutory rate 34.0 % 34.0 % State income taxes, net of federal benefit 3.3 % 3.3 % Permanent Difference (5.46 %) - % Effect of rate change (41.53 %) - % Effect of change in valuation allowance 9.69 % (37.3 %) - % - %
Schedule of Components of Net Deferred Income Tax Assets	Components of the net deferred income tax assets at December 31, 2017 and 2016 were as follows: 2017 2016 Net operating loss carryover $ 6,902,200 $ 7,766,100 Valuation allowance (6,902,200 ) (7,766,100 ) $ - $ -
Summary of Net Operating Loss Carry Forward Offset Future Taxable Income Expire	As of December 31, 2017, we have a net operating loss carry forward of approximately $28,404,200. The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows: 2030 $ 1,000 2031 $ 63,800 2032 $ 345,900 2033 $ 1,840,300 2034 $ 2,324,100 2035 $ 2,987,300 2036 $ 5,061,700 2037 $ 8,464,700 2038 $ 7,315,400

Business Segments and Custome27

Business Segments and Customer Concentrations (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of Revenue by Major Customers by Reporting Segments	The following is a breakdown of customers representing more than 5% of sales for the year ended December 31, 2017: Revenue from customer Percentage of total revenue Customer A $ 1,243,341 62.3 % Customer B 140,028 7.02 % Customer C 110,497 5.54 % $ 1,493,866 74.88 % The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2016: Revenue from customer Percentage of total revenue Customer A $ 1,194,960 82.0 % Customer B 161,363 11.1 % $ 1,356,323 93.1 %

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash federally insured limit value	$ 250,000	$ 250,000
Cash on deposit exceeds	250,000
Allowance for doubtful accounts receivable
Bad debt expense
Intangible assets useful life	20 years
Research and development expenses	$ 574,989	432,146
Deferred rent liability	495	165
Rent expense	$ 142,572	$ 96,151
Percentage of tax benefits likelihood being realized upon ultimate settlement	greater than 50%

Summary of Significant Accoun29

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2017
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 268,784	$ 147,131

Property Plant and Equipment -

Property Plant and Equipment - Schedule of Major Classes of Property and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,988,644	$ 1,641,337
Less: accumulated depreciation	(665,657)	(396,863)
Property and equipment	1,322,987	1,244,474
Equipment not yet placed in service	437,903	250,004
Property and equipment, net of depreciation	1,760,890	1,494,478
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,524	1,524
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,952,538	1,605,317
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,886	4,800
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 29,696	$ 29,696

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Patent costs	$ 764,891	$ 750,640
Trademarks costs	88,853	73,925
Accumulated amortization on patents and trademarks	$ 266,801	204,702
Expiration date of patent	2025-12
Amortization of patent costs	$ 62,099	$ 61,483

Intangible Assets - Schedule of

Intangible Assets - Schedule of Estimated Future Amortization Expense Related to Intangible Property (Details)	Dec. 31, 2017USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 63,610
2,019	63,610
2,020	63,610
2,021	63,610
2,022	63,610
Later years	180,040
Intangible asset, net of amortization	$ 498,090

Commitments and Contingencies34

Commitments and Contingencies (Details Narrative)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Operating lease expire date	Mar. 31, 2019

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Minimum Requirements Under Non-cancellable Leases (Details)	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 167,530
2,019	43,462
Total	$ 210,992

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Number of common stock issued during period, value		$ 15,707,130
Number of options cancelled during period	122,000
Fair value of stock options	$ 999,682	883,490
Number of common stock shares issued for services	178,733
Stock issuance for service	$ 112,251	95,000
Stock compensation expense	$ 1,550,718	$ 1,133,149
Trading Price One [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.75
Trading Price Two [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.79
Stock Option [Member]
Class of Stock [Line Items]
Number of common stock issued during period		50,000
Board of Directors [Member]
Class of Stock [Line Items]
Number of common stock issued during period		64,599
Number of common stock issued during period, value		$ 50,000
Shares issued for legal fees		60,878
Exercisable term	8 years
Number of common stock shares issued for services	439,977
Board of Directors [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.77
Board of Directors [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.79
Employees and Executives [Member]
Class of Stock [Line Items]
Exercisable term	8 years
Stock option vesting period	3 years
Number of common stock shares issued for services	1,485,000
Employees and Executives [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.55
Employees and Executives [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.68
Board of Directors One [Member]
Class of Stock [Line Items]
Number of common stock shares issued for services	95,995
Stock issuance for service	$ (73,560)
Holders of Options [Member]
Class of Stock [Line Items]
Number of option issued during period	950,000
Number of cashless basis of common stock issued	276,171
Holders One [Member] | Warrant [Member]
Class of Stock [Line Items]
Number of warrants exercised their right to cash-less conversion	1,049,847
Received shares during period	173,005
Holders Two [Member] | Warrant [Member]
Class of Stock [Line Items]
Number of option issued during period	1,049,847
Number of cashless basis of common stock issued	173,005
Warrant [Member] | Holders [Member]
Class of Stock [Line Items]
Number of warrants issued during period	59,000	1,250,000
Proceeds from issuance of warrants	$ 35,400	$ 715,000
Number of warrants exercised their right to cash-less conversion		620,000
Received shares during period		1,214,017
Stock Option [Member]
Class of Stock [Line Items]
Exercise price of options ranged		$ 0.51
Stock Option [Member] | Employees [Member]
Class of Stock [Line Items]
Issued options to purchase		1,893,442
Number of options cancelled during period		56,000
Exercisable term		8 years
Stock option vesting period		3 years
Stock Option [Member] | Employees [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of options ranged		$ 0.6129
Stock Option [Member] | Employees [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of options ranged		$ 0.83

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Fair Value Assumptions of Options Using Black Sholes Option Pricing Model (Details) - Stock Option [Member]	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Dividend yield (on common stock)	0.00%	0.00%
Minimum [Member]
Expected life (in years)	5 years 6 months	5 years 6 months
Volatility (based on a comparable company)	73.90%	74.09%
Risk Free interest rate	2.01%	1.24%
Maximum [Member]
Expected life (in years)	8 years	8 years
Volatility (based on a comparable company)	89.00%	82.65%
Risk Free interest rate	2.35%	1.73%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Outstanding Stock Options Issued to Employees and Directors (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Options, Cancelled	122,000
Employees and Directors [Member]
Number of Options, Outstanding, Beginning	5,862,442	4,075,000
Number of Options, Issued	1,924,977	1,893,442
Number of Options, Cancelled	(122,000)	(56,000)
Number of Options, Exercised	(950,000)	(50,000)
Number of Options, Outstanding, Ending	6,715,419	5,862,442
Number of Options, Exercisable	2,855,878
Exercise price per share, Cancelled
Exercise price per share, Exercised
Average remaining term in years, Outstanding, Beginning	0 years	0 years
Average remaining term in years, Issued	0 years	0 years
Average remaining term in years, Outstanding, Ending	5 years 11 months 4 days	0 years
Average remaining term in years, Exercisable	4 years 11 months 15 days	0 years
Aggregate intrinsic value at date of grant, Outstanding, Beginning
Aggregate intrinsic value at date of grant, Outstanding, Ending
Aggregate intrinsic value at date of grant, Exercisable
Employees and Directors [Member] | Minimum [Member]
Exercise price per share, Outstanding, Beginning	$ 0.45	$ 0.45
Exercise price per share, Issued	0.40	0.61
Exercise price per share, Outstanding, Ending	0.40	0.45
Exercise price per share, Exercisable	0.40
Employees and Directors [Member] | Maximum [Member]
Exercise price per share, Outstanding, Beginning	0.87	0.87
Exercise price per share, Issued	0.79	0.83
Exercise price per share, Outstanding, Ending	0.87	$ 0.87
Exercise price per share, Exercisable	$ 0.87

Outstanding Warrants - Summary

Outstanding Warrants - Summary of Outstanding Warrants (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	2,626,667
Average remaining term in years	2 years
Aggregate intrinsic value at date of grant | $	$ 64,583
Minimum [Member] | Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 0.45
Maximum [Member] | Short-Term Notes Payable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 1
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	23,789,808
Average remaining term in years	7 months 17 days
Aggregate intrinsic value at date of grant | $
Private Placement [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ .50
Private Placement [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 1

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 6,902,200	$ 7,766,100
Reduction in valuation allowance	863,900	$ 3,157,300
Net operating loss carry forward	$ 28,404,200

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Provision (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal
State
Total current
Federal	(746,700)	(2,878,000)
State	(117,200)	(279,300)
Total deferred	(863,900)	(3,157,300)
Change in valuation allowance	$ 863,900	$ 3,157,300

Income Taxes - Summary of Statu

Income Taxes - Summary of Statutory Federal Income Tax Rate Before Provision for Income Taxes (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision at the federal statutory rate	34.00%	34.00%
State income taxes, net of federal benefit	3.30%	3.30%
Permanent Difference	(5.46%)
Effect of rate change	(41.53%)
Effect of change in valuation allowance	9.69%	(37.30%)
Effective income tax rate, Total

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Net Deferred Income Tax Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Net operating loss carryover	$ 6,902,200	$ 7,766,100
Valuation allowance	(6,902,200)	(7,766,100)
Deferred income tax assets, net

Income Taxes - Summary of Net O

Income Taxes - Summary of Net Operating Loss Carry Forward Offset Future Taxable Income Expire (Details)	12 Months Ended
	Dec. 31, 2017USD ($)
2030 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	$ 1,000
2031 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	63,800
2032 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	345,900
2033 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	1,840,300
2034 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	2,324,100
2035 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	2,987,300
2036 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	5,061,700
2037 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	8,464,700
2038 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	$ 7,315,400

Business Segments and Custome45

Business Segments and Customer Concentrations (Details Narrative) - Segment	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting [Abstract]
Number of business segment	1	1

Business Segments and Custome46

Business Segments and Customer Concentrations - Schedule of Revenue by Major Customers by Reporting Segments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Percentage of total revenue	5.00%	10.00%
Customer A [Member]
Revenue from customer	$ 1,243,341	$ 1,194,960
Percentage of total revenue	62.30%	82.00%
Customer B [Member]
Revenue from customer	$ 140,028	$ 161,363
Percentage of total revenue	7.02%	11.10%
Customer C [Member]
Revenue from customer	$ 110,497
Percentage of total revenue	5.54%
Customer Representing More Than 5% Of Sales [Member]
Revenue from customer	$ 1,493,866
Percentage of total revenue	74.88%
Customer Representing More Than 10% Of Sales [Member]
Revenue from customer		$ 1,356,323
Percentage of total revenue		93.10%

Business Segments and Custome47

Business Segments and Customer Concentrations - Schedule of Revenue by Major Customers by Reporting Segments (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting [Abstract]
Maximum percentage of customers representing of sales	5.00%	10.00%

Liquidity (Details Narrative)

Liquidity (Details Narrative)	12 Months Ended
	Dec. 31, 2017USD ($)
Debt
February 14, 2018 [Member] | Material Agreement [Member]
Milestone achievement, description	The funding of that note occurs upon the achievement of certain milestones establishing significant sales to national accounts. One milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 1,000 new locations. The first milestone was achieved on March 8, 2018. According to the terms of the Convertible Note, 60% of the gross proceeds, or $2.5 million, was received by the Company within five business days of that Milestone 1 achievement. The other milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 2,500 new locations. We expect the second Milestone to occur during 2018.
February 14, 2018 [Member] | Private Placement [Member] | Convertible Notes Payable [Member]
Gross proceeds from issuance of convertible debt	$ 4,100,000
March 8, 2018 [Member] | Material Agreement [Member] | Milestone Achievement 1 [Member]
Percentage of gross proceeds received during milestone achievement	60.00%
Proceeds on milestone achievement	$ 2,500,000
March 5, 2018 [Member] | Convertible Promissory Notes [Member] | Existing Investors [Member]
Issuance of Promissory note	$ 250,000
Debt interest rate, percentage	12.00%
Debt instrument, term	6 months

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)	Mar. 05, 2018	Feb. 14, 2018
Convertible Notes Payable [Member]
Debt instrument, term		2 years
Percentage of Annual coupon to paid in cash or stock		10.00%
Debt instrument, description		The convertible notes are unsecured and have (i) a two-year term, (ii) a 10% annual coupon to be paid in cash or stock at the Company’s discretion at a conversion price equal to 85% of the average closing bid prices of the Common Stock over the twenty (20) consecutive trading day period immediately preceding the payment date, but in no event lower than sixty cents ($0.60) per share of Common Stock. The investor’s may elect to convert their principal into common stock at a conversion price equal to the lower of: (i) $0.88 per share of Common Stock, or (ii) 85% of the average closing bid prices of the Common Stock over the twenty (20) consecutive trading day period immediately preceding the date of investor’s election to convert; but in no event lower than $0.60 per share of Common Stock. Investors also received warrant coverage of 25% of the number of shares that would be issuable upon a full conversion of the principal amount at an average of the twenty consecutive trading day period immediately preceding the applicable closing date. If any principal amount remains outstanding after the one-year anniversary of the closing, investors will be granted an additional warrant with identical terms. The warrants are exercisable for a period of three years for cash at the greater of 120% of the closing price or $0.70 per share of common stock.
Warrant exercisable, term		3 years
Convertible Promissory Notes [Member] | Existing Investors [Member]
Debt instrument, term	6 months
Issuance of Promissory note	$ 250,000
Debt interest rate, percentage	12.00%
Private Placement [Member] | Convertible Notes Payable [Member]
Gross proceeds from issuance of convertible debt		$ 4,100,000
Milestone achievement, description		One milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 1,000 new locations. The first milestone was achieved on March 8, 2018. The other milestone is that the Company shall have entered into a material agreement or series of related agreements with a national account for the sale of its products into approximately 2,500 new locations.
Private Placement [Member] | Convertible Notes Payable [Member] | Milestone Achievement 1 [Member]
Percentage of principal amount received during the milestone achievement		60.00%
Private Placement [Member] | Convertible Notes Payable [Member] | Milestone Achievement 2 [Member]
Percentage of principal amount received during the milestone achievement		40.00%